Dow jumps over 800 points to hit all-time high as tech stocks stage furious rally

• Nvidia rallied 6.2% and Broadcom climbed 5%, helping trim weekly losses exceeding 10% and 6% respectively, driven by optimism around AI chip spending including Amazon's planned $200 billion investment
• Bitcoin recovered above $68,000 after briefly dropping near $60,000, boosting crypto-related stocks with Robinhood jumping 13.5%, Coinbase rising 9.5%, and Strategy soaring 19%
• The S&P 500 is still heading toward its third losing week in four despite Friday's 1.7% gain, as investors remain uncertain whether massive AI capital expenditures will generate adequate returns

Market Summary

Market Performance:

Wall Street rebounded sharply Friday with the Dow Jones Industrial Average surging 1,035 points (2.1%) to nearly 50,000, hitting an all-time intraday high of 49,980. The S&P 500 rose 1.7% and the Nasdaq Composite gained 2%, though the S&P 500 remains on track for its third losing week in four.

Key Sectors and Movers:

Technology and chip stocks led the rally. Nvidia jumped 6.2%, trimming its weekly loss to just over 10%, while Broadcom climbed 5%, reducing its 6.3% weekly decline. Both benefited from optimism surrounding AI infrastructure spending.

Crypto-related stocks surged as Bitcoin stabilized above $68,000 after briefly dropping near $60,000. Robinhood Markets jumped 13.5%, Coinbase rose 9.5%, and Strategy soared 19%.

Airlines rallied on improved consumer sentiment: United Airlines (+7.1%), American Airlines (+6.3%), and Delta (+5.7%). The Russell 2000 small-cap index gained 2.6%.

Major Concerns:

Amazon dropped 8.5% despite announcing approximately $200 billion in AI investment plans, raising concerns about whether massive AI spending will translate to future profits. Questions persist about AI disrupting software companies' business models.

Commodities:

Gold rose 1.6% to $4,968.20 per ounce following recent volatility, while silver slipped 0.8%.

Consumer Data:

University of Michigan's preliminary consumer sentiment report showed slight improvement, particularly among stock-owning households, though sentiment remained "dismal" for non-stockholders.

Market Context:

The recovery follows earlier weakness driven by concerns about Big Tech's AI spending and market valuations.